New Tricks for Cutting Costs on on Austin, TX Car Insurance

Did you fall for a flashy sales pitch and buy high-priced car insurance? Believe me when I say many consumers are feeling buyer’s remorse and feel like there’s no way out. Many insurance companies compete to insure your vehicles, so it can be very hard to choose a insurance company to find the absolute lowest rate possible.

It’s a great practice to take a look at other company’s rates once or twice a year because insurance rates change quite often. Just because you had the lowest rates a few years ago you can probably find a lower rate today. You’ll find quite a bit of inaccurate information about car insurance on the internet, so I’m going to show you some proven techniques to reduce your car insurance bill.

Lower your Austin Car Insurance Rates

It’s important that you understand some of the elements that go into determining car insurance rates. Having a good understanding of what controls the rates you pay allows you to make educated decisions that may reward you with big savings.

  • Your stress level may be raising your rates – Did you know your job can affect your rates? Jobs such as lawyers, business owners and stock brokers tend to have the highest rates attributed to high stress and lots of time spent at work. On the other hand, occupations such as actors, students and homemakers receive lower rates.
  • Discounts for multiple policies – Some car insurance companies give discounts to insureds who have multiple policies with them such as combining an auto and homeowners policy. Discounts can be ten or even up to twenty percent in some cases. Even if you’re getting this discount it’s still a good idea to shop around to ensure the best deal.
  • Proper usage rating affects rates – The higher the mileage driven in a year the higher your rate. The majority of insurers rate vehicles based on how the vehicle is used. Cars and trucks not used for work or commuting can get a lower rate than vehicles that are driven to work every day. Ask your agent if your car insurance declarations sheet is showing the correct usage for each vehicle, because it can save money.
  • How’s your driving record? – Good drivers have lower premiums compared to drivers with tickets. Only having one ticket can increase rates by as much as thirty percent. Drivers who have flagrant citations such as DWI, reckless driving or hit and run convictions may need to file a proof of financial responsibility form (SR-22) to the state department of motor vehicles in order to keep their license.
  • Save money with special equipment – Purchasing a vehicle with a theft deterrent system can help lower your rates. Theft prevention devices such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all aid in stopping auto theft.

Don’t pay full price with these discounts

Companies offering auto insurance do not advertise all their discounts very clearly, so we researched both the well known and also the lesser-known savings tricks you should be using. If you’re not getting every credit possible, you are throwing money away.

  • Paperless Signup – Certain companies may give you up to $50 simply for signing digitally online.
  • Multiple Vehicles – Insuring multiple vehicles on the same car insurance policy may reduce the rate for each vehicle.
  • College Student – Children who live away from home and do not have access to a covered vehicle can receive lower rates.
  • Organization Discounts – Being a member of a qualifying organization may earn a discount when shopping for car insurance.
  • Own a Home – Owning a house in Austin can help you save on car insurance because owning a home demonstrates responsibility.
  • Defensive Driving Course – Taking a course in driver safety can save you 5% or more and easily recoup the cost of the course.

Keep in mind that some of the credits will not apply to the entire cost. A few only apply to individual premiums such as comp or med pay. Just because it seems like you can get free auto insurance, it just doesn’t work that way.

For a list of insurance companies with the best car insurance discounts in Texas, click here to view.

Car Insurance through a local agent

A small number of people prefer to get advice from a local agent and there is nothing wrong with that. Professional agents can help determine the best coverages and help file insurance claims. The best thing about price shopping on the web is you can get better rates and still choose a local agent.

For easy comparison, once you complete this form (opens in new window), your insurance data is emailed to participating agents in Austin who will give you bids for your insurance coverage. You won’t need to leave your house due to the fact that quote results will go straight to your inbox. How’s that for easy!

Choosing an provider requires more thought than just a cheap price. Ask your prospective agent these questions:

  • Do the coverages you’re quoting properly cover your vehicle?
  • Are glass claims handled on-site or do you have to take your vehicle to a repair shop?
  • What insurance company do they write the most business with?
  • Did they already check your driving record and credit reports?
  • How much will you save each year by using a higher deductible?
  • Will vehicle repairs be made with aftermarket parts or OEM replacement parts?
  • Are claims handled at the agent’s location?
  • Is their price quote a firm figure or are their hidden costs?

If you wish to contact a specific insurance agent in Austin, view this link.

Once you have positive responses to your questions and a good coverage price, chances are good that you have found an insurance company that meets your needs to provide car insurance coverage.

Can switching companies really save?

Consumers in Texas constantly see and hear ads for the lowest price auto insurance by companies like State Farm, GEICO and Progressive. They all make an identical promise that you can save after switching to them.

How do they all claim to save you money?

Different companies have a preferred profile for the type of driver that earns them a profit. An example of a preferred risk might be over the age of 40, owns a home, and has a high credit rating. Any new insured who matches those parameters gets the lowest rates and as a result will probably pay quite a bit less when switching companies.

Auto insurance in Texas

Potential insureds who are not a match for the requirements will have to pay more money which usually ends up with business not being written. The ads say “people who switch” not “people who quote” save money. That’s why companies can claim big savings. Because of the profiling, it’s extremely important to quote coverage with many companies. It’s impossible to know which company will fit your personal profile best.

Even more information is available at the Texas Department of Insurance website. Texas consumers can find out industry alerts, file complaints about a company, view a list of available companies, and learn about specific coverages.

Keep this in mind

As you shop your coverage around, don’t be tempted to skimp on critical coverages to save a buck or two. There are many occasions where consumers will sacrifice full coverage only to find out that they should have had better coverage. The proper strategy is to get the best coverage possible at a price you can afford, not the least amount of coverage.

Lower-priced car insurance can be bought from both online companies in addition to many Austin insurance agents, and you should compare price quotes from both so you have a total pricing picture. Some companies do not provide online price quotes and usually these small, regional companies provide coverage only through local independent agents.